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F I S C A L I M P A C T R E P O R T
SPONSOR Papen
ORIGINAL DATE
LAST UPDATED
1/26/06
HB
SHORT TITLE Dept. of Agriculture Pecan Industry Marketing
SB 245
ANALYST Earp
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
$250.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates House Bill 138
SOURCES OF INFORMATION
LFC Files
Responses Received From
Higher Education Department (HED)
New Mexico Department of Agriculture (NMDA)
SUMMARY
Synopsis of Bill
Senate Bill 245 appropriates $250,000 from the general fund to the Board of Regents of New
Mexico State University for New Mexico Department of Agriculture to perform pecan industry
marketing efforts, research and pest eradication programs.
FISCAL IMPLICATIONS
The appropriation of $250,000 contained in this bill is a recurring expense to the general fund.
Any unexpended or unencumbered balance remaining at the end of fiscal year 2007 shall revert
to the general fund.
SIGNIFICANT ISSUES
This proposal was not included among the funding priorities submitted to the Higher Education
Department (HED) by New Mexico State University. Therefore, it was not considered by HED
pg_0002
Senate Bill 245 Page
2
for possible inclusion in its fiscal year 2007 funding recommendations.
ADMINISTRATIVE IMPLICATIONS
NMDA would bear the administrative impact of implementing the proposed pecan marketing,
research and pest eradication program. NMDA reports that this legislation would not have a sig-
nificant administrative impact on the department.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
House Bill 138 and Senate Bill 245 are duplicate measures.
OTHER SUBSTANTIVE ISSUES
NMDA reports that this legislation would enable the department to direct efforts in marketing,
research, and pest eradication related to the pecan industry from a unified approach. The pecan
industry is currently second in New Mexico crop cash receipts. With respect to economic devel-
opment, pecan production is the foundation for other value added industries including process-
ing, storage and distribution businesses. This bill funds a non traditional approach (three inter-
laced programs) to enhancing and maintaining the economic development of the pecan industry.
Research will be coordinated with the NMSU College Agriculture and Home Economics.
DE/nt